Analyst Insight: Hospitality's Pandemic Recovery

The hospitality industry is slowly rebounding as global travel has begun to increase. Increased sanitization measures, experiential dining, take-away options, and outdoor dining are the new norm. Hotels have also begun to customize experiences to suit customer needs. A few examples include staycations, workcations, and hybrid conferences.

Labor market shortages have caused a strain on the hospitality industry, with a shortage of staff hampering the re-opening of this sector. Restaurants have faced significant supply-chain and operational shocks, forcing hotels to change their food menus according to available produce. However, global transaction values in this sector rose in 2021, in line with increasing consumer demands, as travel restrictions were lifted. Consumers favored luxury resort visits and spa experiences, and could book the entire space for groups, to minimize exposures.

To attract and keep environmentally conscious consumers, the hotel industry has increased its focus on sustainability. A surge in the wedding industry also boosted the sector, and a rise in technological solutions such as sanitization systems, robot butlers, and digital keys, made the post-pandemic hotel experience safer, thus increasing revenues post-pandemic.

The Guidehouse Insights Global Building Stock Database estimates hotel building stock and total building stock across 230 countries and 10 building types based on a rigorous modeling approach that uses available building stock data to fill gaps in publicly available information. The updated database was published in 4Q21.